Gregg: Slash Spending, Freeze Government Pay

Congress should address the exploding budget deficit by slicing into spending and freezing federal government employees’ pay, says Sen. Judd Gregg, R-N.H. The senior Republican on the Senate Budget committee told CNBC that discretionary spending should be trimmed 2 percent during the next five years.Story continues below video.

And he says that federal workers should see their cost-of-living adjustments (COLAs) suspended for three years.

The Congressional Budget Office estimates the budget deficit will total $1.34 trillion for the year ending Sept. 30. "We have to do more. I mean, it's really not an option any longer," Gregg said. "If you look at our numbers, they just don't meet."